According to a new report by Wealth-X and the Sotheby’s International Realty®, there’s a growing number of ultra high net worth (UHNW) individuals buying homes as opportunity gateways for investment diversification and citizenship or foreign residency. The UHNW Luxury Real Estate Report: Homes As Opportunity Gateways shows two trends are driving the trend:
(1) Many emerging nations see international home buying as a safe investment diversification strategy, especially for those in the UHNW segment.
(2) Home-buying by UHNW can mean citizenship or residency status in foreign nations.
Here are some of the key findings in the report:
- 12% of second homes purchased by UHNW individuals in emerging countries are located outside their country of residence (those who reside in BRICS nations: a grouping acronym that refers to the countries of Brazil, Russia, India, China and South Africa, which are all deemed to be at a similar stage of newly advanced economic development) .
- Recent market fluctuations in emerging nations are leading a new generation of UHNW investors to consider investing in luxury residential real estate in Western markets.
- Chinese UHNW individuals make up the third largest share of foreign UHNW homeowners in the United States, behind only Canada and the United Kingdom.
- Twenty nations in Europe and the Americas now offer citizenship or residency programs to individuals willing to invest in domestic residential real estate.
- Many residential real estate markets with such programs – including Sao Paulo, Malta, and the Bahamas – offer good long-term investment opportunities.
“Wealth-X is pleased to partner with the Sotheby’s International Realty brand for this third luxury real estate report for 2015,” explains Wealth-X President David Friedman. “This new joint study explores the trends and home-buying motivations of a distinct group of ultra wealthy individuals in the emerging markets. As their wealth grows, so will their investment fueled by various motivations, be it to diversify their portfolio or to gain citizenship or residency in a foreign country.”
“The research reveals trends that go beyond traditional motivations and help guide real estate investments that contribute to long-term wealth,” according to Philip White, president and chief executive officer, Sotheby’s International Realty Affiliates LLC. “It underscores the important role real estate plays in a larger strategy to build a valuable asset portfolio.”
I hope you find this new Wealth-X Report regarding the ultra wealthy buying homes as opportunity gateways enlightening and inspiring. If your opportunity gateway includes purchasing property in Napa Valley or Sonoma, please contact me at 707-738-4820 or email [email protected]. I am happy to share my insider information on quiet offerings of wineries, vineyards, estates, new construction and homes here, as well as the extraordinary properties that are not available on the open market.